Please ensure Javascript is enabled for purposes of website accessibility
Key Facts in the Federal Cases Against Michael Avenatti
gvw_ap_news
By Associated Press
Published 6 years ago on
March 26, 2019

Share

NEW YORK — Key facts in the federal case against celebrity attorney Michael Avenatti:

Who Is Michael Avenatti?

Avenatti, 48, became a household name last year through his representation of Stormy Daniels, the porn actress who claims she had an affair with President Donald Trump years before he took office.

Daniels issued a statement Monday on Twitter saying she fired Avenatti a month ago after “discovering that he had dealt with me extremely dishonestly.” She said she was “saddened but not shocked” at the charges.

Avenatti filed a lawsuit in Los Angeles seeking to invalidate a nondisclosure agreement about the affair, which Trump has denied. In the months since, he has become a constant and controversial presence on social media and cable news, criticizing Trump and weighing in on a host of current events.

At one point last year, he even flirted with a presidential run. Daniels issued a statement Monday on Twitter saying she fired Avenatti a month ago after “discovering that he had dealt with me extremely dishonestly.” She said she was “saddened but not shocked” at the charges.

Photo of Stormy Daniels
FILE – In this Oct. 11, 2018, file photo, adult film actress Stormy Daniels arrives for the opening of the adult entertainment fair “Venus” in Berlin. A federal judge has ordered porn star Stormy Daniels to pay Donald Trump nearly $293,000 for his attorneys’ fees and another $1,000 in sanctions after her defamation suit against the president was dismissed. Judge S. James Otero made the order Tuesday, Dec. 11, 2018, in Los Angeles. Attorney Michael Avenatti, who represents Daniels, tweeted the order “will never hold up on appeal.” (AP Photo/Markus Schreiber, File)

What Are the Charges Against Him?

Federal prosecutors announced two separate cases Monday against Avenatti that included charges of bank and wire fraud in California and extortion in New York. The California case includes claims that Avenatti misrepresented his personal assets, provided false income tax returns to a bank and failed to pay hundreds of thousands of dollars in taxes.

In New York, Avenatti is accused of extorting Nike for millions of dollars. Prosecutors said he threatened to go public with allegations that Nike employees were improperly paying student athletes if the company didn’t enter into a confidential settlement with him or hire him to conduct an “internal investigation” of the misconduct claims within Nike.

How Did Authorities Begin Investigating Avenatti?

While the claims against Avenatti in New York unfolded over the course of a few days, the charges in California are rooted in misconduct the authorities said dates back several years.

The IRS says Avenatti already owed more than $850,000 in unpaid personal income taxes at the time from 2009 and 2010.

The IRS said in court filings that Avenatti committed bank fraud in 2014 when he made a series of false representations to a bank in Biloxi, Mississippi, in part by providing false income tax returns for 2011, 2012 and 2013. The IRS says Avenatti already owed more than $850,000 in unpaid personal income taxes at the time from 2009 and 2010.

Avenatti also is accused of failing to transfer a $1.6 million settlement to a client and instead using the money “for his own purposes,” according to court documents.

What Is Avenatti Accused of Doing to Nike?

Authorities outlined a whirlwind series of events that began when Avenatti met with Nike’s representatives in Manhattan last week and allegedly threatened to go public with allegations that he said would cause the company to suffer “cut after cut after cut after cut,” including “$10 billion off” its market capitalization. Avenatti told the company he represented the coach of an amateur youth basketball team that recently lost a Nike sponsorship worth $72,000, according to prosecutors, and said he planned to hold a news conference to accuse Nike employees of making illegal payments to top student athletes.

According to prosecutors, Avenatti demanded that the company pay his client, the basketball coach, $1.5 million as a settlement for Nike’s decision not to renew its sponsorship of the team, and pay Avenatti and celebrity attorney Mark Geragos $15 million to $25 million to conduct an internal investigation at Nike.

Why Is This Coming out Now?

The California fraud case had been in the works for many months. But Avenatti was arrested in New York on Monday minutes after he took to Twitter to announce a Tuesday news conference “to disclose a major high school/college basketball scandal perpetrated by @Nike that we have uncovered.”

Shortly after Avenatti allegedly approached Nike with his demands, he tweeted a story about the college basketball corruption case prosecuted recently in the Southern District of New York.

Last week, shortly after Avenatti allegedly approached Nike with his demands, he tweeted a story about the college basketball corruption case prosecuted recently in the Southern District of New York. The allegations in that case were similar to those raised against two employees of one of Nike’s chief rivals, Adidas, who were found guilty in Manhattan federal court of funneling secret payments to the families of top-tier basketball recruits to influence their choices of schools, apparel companies and agents.

The U.S. Attorney in Manhattan, Geoffrey Berman, told reporters Monday his office’s investigation into that scandal is continuing, but he did not elaborate on whether prosecutors are pursuing Avenatti’s allegations of wrongdoing against Nike. Nike issued a statement saying it has been cooperating with that inquiry for more than a year.

DON'T MISS

Trump Says Musk, Vivek Will Form Outside Group to Advise White House on Government Efficiency

DON'T MISS

Fate of Clovis Trustee Race Still Up in the Air. So Are Clovis, Sanger School Bond Measures.

DON'T MISS

Richardson Widens Lead Over Bonakdar in Nail-Biting Race for Fresno City Council

DON'T MISS

What to Know About John Ratcliffe, Trump’s Pick for CIA Director

DON'T MISS

Here Are the People Trump Has Picked for Key Positions So Far

DON'T MISS

Waymo’s Robotaxis Now Open to Anyone Who Wants a Driverless Ride in Los Angeles

DON'T MISS

Fresno County Man Accused of Filing Fake Disability Claims in $300K Fraud Scheme

DON'T MISS

Trump Nominates Fox News Host Pete Hegseth for Defense Secretary

DON'T MISS

Economists Warn of Inflation and Debt Risks in Trump’s Second Term Plans

DON'T MISS

How Many Smoke Shops Is Too Many? Fresno Plan Would Allow Only 49

UP NEXT

Chris Wallace Is Leaving CNN, Eager to Explore New Media Landscape

UP NEXT

US Regulators Investigating Whether Engines on 1.4 Million Hondas Might Fail

UP NEXT

When to Catch the Last Supermoon of the Year

UP NEXT

Mattel Says It ‘Deeply’ Regrets Misprint on ‘Wicked’ Dolls Packaging That Links to Porn Site

UP NEXT

Trump to Target Iran’s Oil Trade in Renewed ‘Maximum Pressure’ Campaign

UP NEXT

4B Movement: After the Election, a Call for Women to Swear Off Men

UP NEXT

FBI Thwarts Iranian Murder-for-Hire Plan Targeting Donald Trump

UP NEXT

Wave of Racist Texts After Election Prompts FBI Scrutiny

UP NEXT

Americans Seek Fresh Start Abroad as Election Sparks Expat Interest

UP NEXT

Trump Promises to Bring Lasting Peace to a Tumultuous Middle East. But Fixing It Won’t Be Easy

What to Know About John Ratcliffe, Trump’s Pick for CIA Director

8 hours ago

Here Are the People Trump Has Picked for Key Positions So Far

8 hours ago

Waymo’s Robotaxis Now Open to Anyone Who Wants a Driverless Ride in Los Angeles

8 hours ago

Fresno County Man Accused of Filing Fake Disability Claims in $300K Fraud Scheme

8 hours ago

Trump Nominates Fox News Host Pete Hegseth for Defense Secretary

8 hours ago

Economists Warn of Inflation and Debt Risks in Trump’s Second Term Plans

8 hours ago

How Many Smoke Shops Is Too Many? Fresno Plan Would Allow Only 49

9 hours ago

US Says It Will Not Limit Israel Arms Transfers After Some Improvements in Flow of Aid to Gaza

9 hours ago

Who With Valley Ties Could Land Spots in the Trump Administration?

10 hours ago

Tulare Gang Member Gets Life Without Parole for 2022 Murders

11 hours ago

Trump Says Musk, Vivek Will Form Outside Group to Advise White House on Government Efficiency

WASHINGTON — President-elect Donald Trump on Tuesday said Elon Musk and former GOP presidential candidate Vivek Ramaswamy will lead a new “D...

7 hours ago

7 hours ago

Trump Says Musk, Vivek Will Form Outside Group to Advise White House on Government Efficiency

7 hours ago

Fate of Clovis Trustee Race Still Up in the Air. So Are Clovis, Sanger School Bond Measures.

7 hours ago

Richardson Widens Lead Over Bonakdar in Nail-Biting Race for Fresno City Council

8 hours ago

What to Know About John Ratcliffe, Trump’s Pick for CIA Director

8 hours ago

Here Are the People Trump Has Picked for Key Positions So Far

8 hours ago

Waymo’s Robotaxis Now Open to Anyone Who Wants a Driverless Ride in Los Angeles

A Fresno County man has been indicted on mail fraud charges for allegedly submitting over $300,000 in falsified disability claims using stolen identities. (GV Wire File)
8 hours ago

Fresno County Man Accused of Filing Fake Disability Claims in $300K Fraud Scheme

Pete Hegseth walks to an elevator for a meeting with President-elect Donald Trump at Trump Tower in New York, Dec. 15, 2016. (AP File)
8 hours ago

Trump Nominates Fox News Host Pete Hegseth for Defense Secretary

Search

Send this to a friend